Understanding The Market Conditions For Luxury Property In Sri Lanka And Deciding Factors To Consider When Buy Home In Colombo

Real Estate Market Conditions In Sri Lanka

With the end of the civil war Sri Lanka as experienced growth in almost all market segments. Of these, one of the most positively impacted areas has been the real estate market. The growth has been seen to be supported in two ways. For one, more and more foreign investors have been encouraged to carry out developments in the property market which has resulted in many projects such as apartments for sale, flats and even houses for sale coming up. This can be attributed to certain political moves like the “Restrictions on Alienation of Land Bill” put forward in 2014 supporting more foreign direct investment. On the other hand the demand to buy home from the homebuyers’ perspective has also increased. As such, the demand for Colombo apartments, mainly in areas like Dehiwala, Colombo 05 and similar locations has increased. In addition, there is also a growing segment from buyers to investors showing interest in luxury property as well.

Growth Of Colombo Luxury Property Market

In response to the growing demand, the luxury property market in Sri Lanka, especially in the capital city Colombo has increased in supply. As per the recent reports released by the Research Intelligence Unit (RIU) of the country, the supply of such luxury units has shown to have increased from close to 800 units in 2009 to over 2600 units being released in 2015. At this rate of growth, it is expected to reach over 6000 units by 2018-2019. This has been identified as a potential over supply to the real estate market by the increase of luxury Colombo apartments, flats and even houses for sale. The following are some of the large private sector projects that have contributed to this increased supply.

  • John Keells Holding’s Cinnamon Life waterfront project – valued at over $850 million, this project is expected to be one of the largest investments from the local private sector. Once completed it will feature an 800 room hotel, many luxury apartments for sale, office space and convention and shopping mall.
  • The mixed use development project from Havelock City features 4 residential towers comprising of 650 units.
  • Astoria luxury condominium development
  • Shangri La residential towers
  • Altair skyscraper
  • Although the supply is currently exceeding the demand for property for the luxury market, it is expected that with the growing improvement of the political and economic stability in the country, the demand from those who want to buy home properties in the form of apartments for sale, flats and houses for sale will also increase. Furthermore, the population of wealthy Sri Lankans who are currently abroad will show a rise in wanting to return back to the country. This will lead to them wanting to invest in real estate in Colombo. Therefore the focus will be directed more towards Colombo apartments, mainly in areas like Dehiwala and Colombo 05.

    Houses For Sale Or Apartments For Sale

    As a potential homeowner, you would want to carefully evaluate in what form you would want to buy home property. Whether it is a home or apartment you are looking for, each would have the pros and cons associated and they would differ according to each individuals need. Firstly choosing to live in flats or apartments may seem like a common thing to most of those in city areas, but this is actually a significant lifestyle change for traditional Sri Lankan living. A home is a seen as a more private place with more space and much less noise. But like in any other developed parts of the world, purchasing a house in city areas of Sri Lanka can be quite costly. Making such a significant investment can be a very big move under current economic conditions and you might even not really need some of the factors you will be paying so much extra for depending to your life style.On the other hand flats or apartments in areas such as such as in Dehiwala and Colombo 05 offer a host of amenities. But these offerings do also tend to come for a cost. Some of them add value by removing factors like maintenance and other facilities like back up power, utilities, repair services and fire safety mechanisms that cannot be seen with individual housing units. Financing the purchase of an apartment versus independent property can be easier as well.

    Why Buy Luxury Colombo Apartments

    Taking all of the factors into consideration such as the growth in market and accommodation options, many have chosen to invest in luxury apartments in Colombo. Firstly owning such prime properties is seen as a super luxury investment which many enjoy indulging in. When you simply look at the development projects in this space, you would understand how select the purchase would make you feel to join an elite group of the upmarket segment.

    When you choose a location in the capital city itself such as in Dehiwala, Colombo 05 or other high value city areas, you will find that you will be residing in an area that is in close proximity to many important institutions. These include some of the most leading private and government institutions in the country, locations where most banks and financial institutions are located, other government offices and secretariats, important services providers such as police stations and hospitals. It will also allow you to be in the vicinity of venues some of the most happening events centered on the capital city. Also, the properties are not merely designed to offer only residential accommodation but they offer a host of other enjoyable features such as shopping malls, gymnasiums, pools and other recreational spaces as well. This allows you to enjoy a most of luxury activities without even having to travel out of the premises. Since office space, convention rooms and conference facilities are also made available it is easier for business owners to conduct their business activities and maintain their home, all in very close proximity to each other.

    Author's Bio: 

    Jerome Julian writes about the luxury apartments in Colombo, based on his experience on buying homes, apartments, property, real estate in Colombo and other areas of Sri Lanka. He recommends the Span Tower apartments builders in Sri Lanka for the best apartments.